DraftKings and FanDuel settle with New York for $12 million

Just because New York state has legalized daily fantasy sports doesn't mean that DraftKings and FanDuel are off the hook just yet. The two sites have settled with New York's Attorney General over charges of misleading customers about their chances of winning. Each company will pay $6 million, and they'll have to institute "sweeping reforms" to their marketing. They'll have to explicitly disclose the expected odds and winnings in contests, as well as the terms for any promotions. Both will also have to offer resources for players who might succumb to addiction, and host a page detailing the success rates for users -- particularly for top players who might use scripts and advanced theories to get an edge.

DraftKings and FanDuel have yet to comment on the settlement (we've reached out to both). However, it won't be shocking if they're more relieved than upset by the verdict. Just months ago, the companies weren't allowed to operate in New York, and faced the possibility of a permanent ban if things went south. They can now put that uncertainty behind them and get back to business, albeit with more than a few caveats attached in the name of consumer protection.